USD 45 million PE investment in Future Consumer Enterprise Ltd achieves closure with issuance of shares and CCDs

Shardul Amarchand Mangaldas & Co acted as legal counsel to Future Consumer Enterprise Limited in relation to the private equity investment of USD 45 million  by Black River Food 2 Pte. Ltd. The transaction has been closed following the approval by the Competition Commission of India.

SAM & Co advised Future Consumer Enterprise and the Promoters/Promoter Group on all the legal aspects of the transaction including due diligence on the Company, drafting, negotiation and execution of the transaction documents, as well as filings and hearings before the Competition Commission of India. The General Corporate (PE), Competition Law and Intellectual Property Teams of Shardul Amarchand Mangaldas & Co team were involved in the transaction.

The Deal Team/General Corporate Team (PE) was led by Mr. Kalpataru Tripathy, Partner, and included Mr. Abhishek Guha, Partner, Mr. Aditya Mehra, Senior Associate, Ms. Roma A. Das, Associate and Ms. Aditi Tralshawala, Associate

The Competition Team was led by Mr. Naval Chopra, Partner and included Ms. Manika Brar, Partner, Mr. Rohan Arora, Senior Associate, Mr. Yaman Verma, Senior Associate, and Mr. Vardhan Tulsian, Senior Associate.

IPR related advice was provided by Ms. Charu Mehta, Principal Associate and included Ms. Apoorva Murali, Associate 

As a part of the transaction, the Investor shall pick up a minority stake in Future Consumer Enterprise Limited by subscribing to a mix of compulsorily convertible debentures and equity shares. The Company is also issuing warrants to members of the promoter group as a part of the transaction. As a condition precedent to the investment, the Company has restructured its business to carve out all retail activities from the scope of its operations by transferring it to other entities.

The parties involved in the transaction were Future Consumer Enterprise Limited (Company), Promoters/Promoter Group of the Company and Black River Food 2 Pte. Ltd. (Investor).    

Deal Value: USD 45 million

Date of Closing: April 26, 2016.

Other Advisor to the transaction were Trilegal, Mumbai (legal counsel to the Investor); and PricewaterhouseCoopers Pvt. Ltd. (financial advisors to the Company).